1. OM7a -1TQM and Quality Tools Chapter 11 TQM & Quality Tools

2. OM7a -2TQM and Quality Tools Total Quality Management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

3. OM7a -3TQM and Quality Tools Find out what the customer wants Design a product or service that meets or exceeds customer wants Design processes that facilitates doing the job right the first time Keep track of results Extend these concepts to suppliers The TQM Approach

4. OM7a -4TQM and Quality Tools Elements of TQM Continual improvement Competitive benchmarking Employee empowerment Team approach Decisions based on facts Knowledge of tools Supplier quality Champion

5. OM7a -5TQM and Quality Tools Continuous Improvement Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. Kaizen: Japanese word for continuous improvement.

6. OM7a -6TQM and Quality Tools Quality at the Source The philosophy of making each worker responsible for the quality of his or her work.

7. OM7a -7TQM and Quality Tools Lack of: – Company-wide definition of quality –Strategic plan for change –Customer focus –Real employee empowerment –Strong strong motivation –Time to devote to quality initiatives –Leadership Obstacles to Implementing TQM

8. OM7a -8TQM and Quality Tools Poor interorganizational communication View of quality as a “quick fix” Emphasis on short-term financial results Internal political and “turf” wars Obstacles to Implementing TQM

9. OM7a -9TQM and Quality Tools Basic Steps in Problem Solving Define the problem and establish an improvement goal Collect data Analyze the problem Generate potential solutions Choose a solution Implement the solution Monitor the solution to see if it accomplishes the goal

10. OM7a -10TQM and Quality Tools The PDSA Cycle Plan Do Study Act

11. OM7a -11TQM and Quality Tools Process Improvement : A systematic approach to improving a process

12. OM7a -12TQM and Quality Tools The Process Improvement Cycle Implement the Improved process Select a process Study/document Seek ways to Improve it Design an Improved process Evaluate Document

13. OM7a -13TQM and Quality Tools Process Improvement and Tools Process improvement - a systematic approach to improving a process –Process mapping –Analyze the process –Redesign the process Tools –There are a number of tools that can be used for problem solving and process improvement –Tools aid in data collection and interpretation, and provide the basis for decision making

14. OM7a -14TQM and Quality Tools Basic Quality Tools Flowcharts Check sheets Histograms Pareto Charts Scatter diagrams Control charts Cause-and-effect diagrams Run charts

15. OM7a -15TQM and Quality Tools Check Sheet Billing Errors Wrong Account Wrong Amount A/R Errors Wrong Account Wrong Amount Monday

16. OM7a -16TQM and Quality Tools Pareto Analysis 80% of the problems may be attributed to 20% of the causes. 80% of the problems may be attributed to 20% of the causes. Smeared print Number of defects Off center Missing label Loose Other

17. OM7a -17TQM and Quality Tools Control Chart 970 980 990 1000 1010 1020 0123456789101112131415 UCL LCL Figure11-9

18. OM7a -18TQM and Quality Tools Cause-and-Effect Diagram Figure11-10 Effect MaterialsMethods EquipmentPeople Environment Cause

19. OM7a -19TQM and Quality Tools Run Chart Time (Hours) Diameter

20. OM7a -20TQM and Quality Tools Tracking Improvements UCL LCL UCL Process not centered and not stable Process centered and stable Additional improvements made to the process Figure11-14

21. OM7a -21TQM and Quality Tools Methods for Generating Ideas Brainstorming Quality circles Interviewing Benchmarking 5W2H

22. OM7a -22TQM and Quality Tools Team approach –List reduction –Balance sheet –Paired comparisons Quality Circles

23. OM7a -23TQM and Quality Tools Identify a critical process that needs improving Identify an organization that excels in this process Contact that organization Analyze the data Improve the critical process Benchmarking Process